Georgia Budget & Policy Institute Claire Suggs, Senior Education - - PowerPoint PPT Presentation

Education Funding Overview

Budget Overview | www.gbpi.org

Georgia Budget & Policy Institute

Claire Suggs, Senior Education Policy Analyst

November 11, 2013

Budget Overview | www.gbpi.org

Who We Are

State policy think tank Nonprofit Non-partisan Founded in 2004

Budget Overview | www.gbpi.org

Our Policy Area Focus

Taxes Budget Education Health Care Economic Security Economic Development

Our work isn’t about the numbers… It’s telling the story of people using numbers

State Funding

Since 2002 in Cobb County:

• State funding per student has declined 16.9 percent
• The number of students has grown 11 percent
• The percent of economically disadvantaged

students has grown more than 21 percentage points

Shifting responsibility for K-12 funding: Georgia

State 56% Local 38% Federal 6%

State of Georgia: Funding sources for K-12 education, FY2002

State 49% Local 42% Federal 9%

State of Georgia: Funding sources for K-12 education, FY2012

SOURCE: Georgia Department of Education and GBPI research

Shifting responsibility for K-12 funding: Cobb

State 50% Local 47% Federal 3%

Cobb County: Funding sources for K-12 education, FY2002

State 45% Local 49% Federal 6%

Cobb County: Funding sources for K-12 education, FY2012

SOURCE: Georgia Department of Education and GBPI research

K-12 Formula Underfunded by $1 Billion

Austerity Cuts in Cobb County

• QBE austerity cut is $65,900,761 for fiscal year

2014.

• QBE austerity cut per student is $599.
• Cumulative austerity cut is $491,296,767 since

2002.

Local Funding

Between 2008 and 2012 in Cobb County:

• Tax digest fell 17.8 percent between 2008 and

2012.

• Local revenue per student fell by 12.3 percent

Impact of Funding Losses

• Cut the school calendar to 175 days
• Increase class size
• Eliminate 1,380 teaching positions since 2009
• Eliminate 113 instructional support positions since 2009
• Cut central office staff
• Rely on reserve funds

Revenues Return to 2007 Levels

General and Motor Fuel Funds 2007-2014 Fiscal Years

Drivers of Budget Growth

$210 Million $109 Million $127 Million

$42 Million $38 Million $35 Million

K-12 and University System Formula Growth Medicaid and PeachCare Growth Teacher and Employees Retirement Systems Contributions Debt Services K-12 Education Equalization Department of Justice Settlement Agreement

Most Georgia Spending is for Education

51.5%

Education

Georgia’s Fiscal Year 2014 Budget: $18.8 Billion

Other

Health Care is 2nd Largest Budget Expense

51.5%

Education

51.5% Education

Education Other 20.9% Health Care

Georgia’s Fiscal Year 2014 Budget: $18.8 Billion

Many Services in Smaller Category “Other”

51.5%

Education

51.5% Education

Other Education Health Care

Georgia’s Fiscal Year 2014 Budget: $18.8 Billion

Other 27.6%

State Spending for “Other” Services

51.5%

Education

51.5% Education

Other Other 27.6% Other

Public Safety 9.2% Debt Services 6.4% Transportation 4.3% General Gov 3.9% Human Services 2.6% Judicial Branch 0.9% Legislative Branch 0.4%

27.6%

State

$723 M $700 million $260 million $51 million $257 million $793 million $1.54 B $566 million $103 million $116 million $328 million $378 M

$- $200,000,000 $400,000,000 $600,000,000 $800,000,000 $1,000,000,000 $1,200,000,000 $1,400,000,000 $1,600,000,000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

18

Days of reserves 2002

29

State Savings Depleted During Recession

Days of reserves 2008

2

$103 M 2010

7.6

Days of reserves 2013

Q & A

Budget Overview | www.gbpi.org

LET’S STAY CONNECTED

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